What are Liabilities?
- janetldeardorff
- Feb 12
- 1 min read
Updated: Mar 19
Remember Assets = Liability + equity
A liability is what your company owes to another entity, whilst an asset is the opposite.
Liabilities can come in many forms just like assets. Some of these are Accounts Payable which is the money you owe such as a pending invoice, Or even Credit card payments and Loans.
Some other liabilities are Wages owed, Rent payments, and even Taxes.
Not all liabilities are bad and some can even help leverage your own assets for profit.
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